Auto Parts Core Charges: State Rules on Refundable Deposits for Remanufactured Parts

Industry standard (Batteries)

$10–$25 refundable core deposit

Lead-acid car batteries, marine batteries, and other rechargeable automotive batteries

Lead-acid batteries are highly recyclable; most retailers require a core return or charge a core fee

Industry standard (Alternators and Starters)

$30–$75 refundable core deposit

New or remanufactured alternators and starters

Core must be the same type of part in rebuildable condition for a full refund

Industry standard (Engine Blocks and Transmissions)

$200–$500+ refundable core deposit

Remanufactured engine blocks, short blocks, long blocks, and transmissions

Cores must be drained of fluids, have no catastrophic damage (cracks, scored bores), and include all major components. Return windows typically 30–90 days.

Industry standard (Brake Calipers and Other Parts)

$15–$100 refundable core deposit

Brake calipers, power steering pumps, water pumps, A/C compressors, and turbochargers

Core charge amounts vary by part complexity and remanufacturing value

Washington

Minimum $5 core charge on batteries; return treated as trade-in for sales tax

Lead-acid batteries and other auto parts with core charges

The returned core is treated as a trade-in, reducing the taxable amount. B&O tax applies to the full selling price including the core charge.

Colorado

Core charge included in taxable price; sales tax refunded on return

Auto parts sold with refundable core deposits

Sales tax is collected on the full price including core charge at time of sale. When the core is returned, both the core charge and the sales tax on it are refunded to the customer.

Michigan

Core charges deductible from taxable price if separately stated

Auto parts with recycling fees, deposits, or disposal fees

Effective January 2017, core charges that are separately stated on the invoice can be deducted from the taxable sales price.

California

Core charge included in taxable price; no sales tax refund on return

Auto parts sold with refundable core deposits

The core return is treated as an anticipated rebate, not a deposit refund. Sales tax applies to the full price at time of sale and is not refunded when the core is returned.

Most other states

Core charge generally included in taxable sales price

Auto parts sold with refundable core deposits

Most states tax the full purchase price including the core charge. Sales tax treatment on the return varies — check your state's department of revenue for specific rules.